Record 75% Defence Capital Procurement Budget Earmarked For Domestic Industry: Rajnath Singh

New Delhi: Record 75 per cent of the defence capital procurement budget has been earmarked for the domestic industry in Financial Year (FY) 2023-24, up from 68 per cent in 2022-23.

This was announced by Raksha Mantri Rajnath Singh during the Bandhan ceremony of 14^th Aero India in Bengaluru on February 15, 2023.

In FY 2023-24, the Ministry of Defence (MoD) has been allocated a total Budget of Rs 5.94 lakh crore, which is 13.18 per cent of the total budget (Rs 45.03 lakh crore).

Capital outlay pertaining to modernisation and infrastructure development has been increased to Rs 1.63 lakh crore.

Rajnath Singh termed the decision as an unprecedented step taken by the Government at the outset of ‘Amrit Kaal’ to further strengthen the defence sector and minimise import dependency.

“If you take one step, the government promises to take ten steps forward. You spoke of land to run on the path of development. We are providing you full sky. Earmarking three-fourths of the capital procurement budget for the local industry is a step in that direction,” he said.

The Raksha Mantri exuded confidence that with this step, the Indian industry will come forward with more enthusiasm and contribute in making the defence sector more powerful and prosperous. He was of the view that a strong & self-reliant defence industry not only strengthens the security system of the country but also bolsters the economy.

He highlighted that, in the last few years, a domestic industry-friendly environment has been created in the country providing a runway for the local companies to grow and ensure holistic development of the nation while catering to the security needs of the friendly countries, in line with Prime Minister Shri Narendra Modi’s vision of ‘Make in India, Make for the World’.

The Bandhan ceremony also witnessed the forging of 266 partnerships including 201 MoUs, 53 major announcements, nine product launches and three Transfers of Technology, worth around Rs 80,000 crore.